The Toronto housing market has roared back, posting its biggest gains in 21 months during September.
Not only did overall sales of homes in the Greater Toronto Area (GTA) rise strongly in September, but the cost of a typical home reached a near record high that was previously set in 2017. The benchmark price across all types of homes rose 5.2% in September from a year earlier to $805,500, the highest annual rate of growth since December 2017. That’s about $10,000 short of the record set more than two years ago when soaring prices prompted a series of government policy changes to cool the market.
Prices were driven higher by a decline in supply, with active listings down 14% to 17,254. Sales in the Toronto region jumped 22% to 7,825 units from the same period last year, the Toronto Real Estate Board said. All housing segments saw double-digit gains, led by a 29% sales increase for detached homes. The average price of a home in Toronto rose 5.8% to $843,115, the highest price this year, though well below the peak of almost $921,000 set in April 2017.
Demand for homes in Canada’s biggest city continues to grow amid lower interest rates and a crunch in supply thanks to strong immigration. Buyers have also adjusted to stricter mortgage-lending rules put in place to cool the market. Sales in Vancouver rebounded 46% last month after a policy-driven slump, though prices continue to dip in that western Canadian city.
